Mascot Oil Co. v. Commissioner
United States Board of Tax Appeals
1. Petitioner is entitled to include in income from its oil property a bonus received for granting an exclusive right to drill for oil at depths below 1,600 feet, where it appears that there was production from wells on the same property less than 1,600 feet deep and notwithstanding there were no producing wells of the greater depth. 2. Taxpayer, a lessee of oil producing land, did not by an exclusive sublease of the right to drill to depths beyond 1,600 feet, create a new…
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1. Petitioner is entitled to include in income from its oil property a bonus received for granting an exclusive right to drill for oil at depths below 1,600 feet, where it appears that there was production from wells on the same property less than 1,600 feet deep and notwithstanding there were no producing wells of the greater depth. 2. Taxpayer, a lessee of oil producing land, did not by an exclusive sublease of the right to drill to depths beyond 1,600 feet, create a new "property" in the land below 1,600 feet, which property must stand on its own production in computing depletion, thereby…
1Opinion of the Court
MASCOT OIL COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Mascot Oil Co. v. Commissioner
Docket No. 55997.
United States Board of Tax Appeals
29 B.T.A. 652; 1933 BTA LEXIS 905;
December 27, 1933, Promulgated
1. Petitioner is entitled to include in income from its oil property a bonus received for granting an exclusive right to drill for oil at depths below 1,600 feet, where it appears that there was production from wells on the same property less than 1,600 feet deep and notwithstanding there were no producing wells of the greater depth.
2. Taxpayer, a lessee of oil producing…
2Cases cited1 opinion
- Mascot Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1933